Organization SYSTEm Viewpoint Models
Organization System Viewpoint Models
Organization viewpoints define abstractions on the organization as system operations structure, infrastructure, operations systems, organizational capability. Viewpoints can be used to view aspects of the organization in isolation.
[TBD]
Organization System Structures
Organization system structures may delineate physical or logical organizing forms. Logically, organizations are complexes of people and/or groups that according to commonly agreed rules and procedures strive to realize one or more preset objectives. An organization logical structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. The organizational structure also determines how information flows between levels within the company.
The organization structure design focuses on enabling effective management of complexity, coordination and control of organizational behavior through activities, decision rules, positions and roles, and responsibilities. This is critical as the decision rights cascade grows, because the structure and operating principles as well as governance of the organization becomes more complex and critical to manage.
Organization viewpoints define abstractions on the organization as system operations structure, infrastructure, operations systems, organizational capability. Viewpoints can be used to view aspects of the organization in isolation.
[TBD]
Organization System Structures
Organization system structures may delineate physical or logical organizing forms. Logically, organizations are complexes of people and/or groups that according to commonly agreed rules and procedures strive to realize one or more preset objectives. An organization logical structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. The organizational structure also determines how information flows between levels within the company.
The organization structure design focuses on enabling effective management of complexity, coordination and control of organizational behavior through activities, decision rules, positions and roles, and responsibilities. This is critical as the decision rights cascade grows, because the structure and operating principles as well as governance of the organization becomes more complex and critical to manage.
-
Strategy Model
-
Implementation System Model
-
Execution Model
-
Operations Systems
<
>
Strategy Model
[TBD]
They are stable over time and more difficult for competitors to copy than capital market access, product strategy, or technology.
Organization Capability
Organizational capability refers to a company's ability/capacity to manage resources, such as employees, effectively to gain an advantage over competitors. Organizational capabilities are key intangible assets; you can’t see or touch them, yet they can make all the difference in the world when it comes to market value. These capabilities - the collective skills, abilities, and expertise of an organization - are the outcome of investments in staffing, training, compensation, communication, and other human resource areas. They represent the ways that people and resources are brought together to accomplish work. They form the identity and personality of the organization by defining what it is good at doing and, in the end, what it is. Organization capability defines “what” a business does at its core. It expresses the capacity to deploy resources or efficiently and effectively assign organization activities in creating and delivering value to customers. Organization capability is defined as an organization’s ability to, for example, innovate, or to respond to changing customer needs. It expresses the potential capacity to deploy resources, or efficiently and effectively assign organization activities to the right “actors” (socio-technical systems) in creating and delivering value to customers.
Organizational capabilities emerge when a company delivers on the combined competencies and abilities of its individual members. Individual abilities may include ‘Leadership’ ability, which is an individual social skill that gives the individual the ability to, for example, set direction, communicate a vision, or motivate people. Organization capabilities enable an organization to turn its technical know-how into results.
Organizational Capabilities Examples
There is no magic list of capabilities appropriate to every organization; however, there are some identified list that well-managed companies tend to have, such as:
Organization capability is defined operationally, in terms of the dynamic relationships between organizational culture, the outcomes of operational processes, institutional arrangements, structure, and the organization’s resources.
[TBD]
Organizational Capability profile describes the skills, knowledge and resources that enable a company to provide quality products and services to customers. Organization capabilities such as collective skills, abilities, and expertise of the organization are the outcome of investments in staffing, training, compensation, communication and other human resource areas.
The capability building focus should be on the business's ability to meet customer demand; it must be unique to the organization to prevent replication by competitors.
Core Competencies, Competencies and Abilities
Competency is an overloaded term and may refer to a person’s functional, social or technical competency.
Core competencies refer to a company’s core technical competencies; for example, a financial services firm must know how to manage risk. Core competencies are distinctive, rare, valuable firm-level resources that competitors are unable to imitate, substitute or reproduce.
[TBD]
They are stable over time and more difficult for competitors to copy than capital market access, product strategy, or technology.
Organization Capability
Organizational capability refers to a company's ability/capacity to manage resources, such as employees, effectively to gain an advantage over competitors. Organizational capabilities are key intangible assets; you can’t see or touch them, yet they can make all the difference in the world when it comes to market value. These capabilities - the collective skills, abilities, and expertise of an organization - are the outcome of investments in staffing, training, compensation, communication, and other human resource areas. They represent the ways that people and resources are brought together to accomplish work. They form the identity and personality of the organization by defining what it is good at doing and, in the end, what it is. Organization capability defines “what” a business does at its core. It expresses the capacity to deploy resources or efficiently and effectively assign organization activities in creating and delivering value to customers. Organization capability is defined as an organization’s ability to, for example, innovate, or to respond to changing customer needs. It expresses the potential capacity to deploy resources, or efficiently and effectively assign organization activities to the right “actors” (socio-technical systems) in creating and delivering value to customers.
Organizational capabilities emerge when a company delivers on the combined competencies and abilities of its individual members. Individual abilities may include ‘Leadership’ ability, which is an individual social skill that gives the individual the ability to, for example, set direction, communicate a vision, or motivate people. Organization capabilities enable an organization to turn its technical know-how into results.
Organizational Capabilities Examples
There is no magic list of capabilities appropriate to every organization; however, there are some identified list that well-managed companies tend to have, such as:
- Talent - We are good at attracting, motivating, and retaining competent and committed people.
- Speed - We are good at making important changes rapidly.
- Shared Mind-Set and Coherent Brand Identity - We are good at ensuring that employees and customers have positive and consistent images of and experiences with our organization.
- Accountability - We are good at obtaining high performance from employees.
- Collaboration - We are good at working across boundaries to ensure both efficiency and leverage.
- Learning - We are good at generating and generalizing ideas with impact.
- Leadership - We are good at embedding leaders throughout the organization.
- Customer Connectivity - We are good at building enduring relationships of trust with targeted customers.
- Strategic Unity - We are good at articulating and sharing a strategic point of view.
- Innovation - We are good at doing something new in both content and process.
- Efficiency - We are good at managing costs.
Organization capability is defined operationally, in terms of the dynamic relationships between organizational culture, the outcomes of operational processes, institutional arrangements, structure, and the organization’s resources.
[TBD]
Organizational Capability profile describes the skills, knowledge and resources that enable a company to provide quality products and services to customers. Organization capabilities such as collective skills, abilities, and expertise of the organization are the outcome of investments in staffing, training, compensation, communication and other human resource areas.
The capability building focus should be on the business's ability to meet customer demand; it must be unique to the organization to prevent replication by competitors.
Core Competencies, Competencies and Abilities
Competency is an overloaded term and may refer to a person’s functional, social or technical competency.
- Functional competency is a specific knowledge or skill area, such as in marketing, finance, manufacturing, etc., that relates to the successful performance of the job. Functional competencies are specific to a specific department or type of job. They are basic skills and behavior that are needed to do a job successfully.
- Social competency or ability is any skill facilitating interaction and communication with others where social rules and relations are created, communicated , and changed in verbal and non-verbal ways.
- Technical competencies are specific to fluency in operating specific equipment, software application, design calculations, coding, theoretical and practical expertise in a specific domain such as barbering, dentistry, etc.
Core competencies refer to a company’s core technical competencies; for example, a financial services firm must know how to manage risk. Core competencies are distinctive, rare, valuable firm-level resources that competitors are unable to imitate, substitute or reproduce.
Implementation System
The strategy implementation model is a systematic capability model of the organization and the organization's operating model.
Operating Model
The operating model is an abstract representation of how an organization operates across process, organization structure, partner network, technology domains in order to deliver value defined by the organization in scope. The Operating Model serves as a blueprint for how resources are organized and operated to get critical work done. It encompasses decisions around the shape and size of the business organization, where to draw the boundaries for each line of business, how people work together within and across these boundaries, how the corporate center will add value to the business units, and what norms and behaviors should be encouraged.
The Operating Model Design Decision Areas:
Based on design principles the Operating Model takes shape through choices in the following areas::
The Operating Model is the result of the Operations Strategy, and is focused on how to best enable and implement the organization's strategy. Operations strategy defines through the Operating Model, an organization structure design on how an entire business will allocate its resources to support operations and its strategic goals.
Operations Infrastructure
The Operations Infrastructure is the broad heading under which strategic decisions related to operations strategic decision areas concerned with people and systems are categorized. Infrastructure decision areas comprise:
Organization Physical Structure
Operations strategy defines through the design of the organization's structure and infrastructure how an entire business will allocate its resources to support operations and its strategic goals. Operations structure is a broad heading under which the strategic decision areas of operations related to physical attributes are categorized. The structural decision areas comprise:
The strategy implementation model is a systematic capability model of the organization and the organization's operating model.
Operating Model
The operating model is an abstract representation of how an organization operates across process, organization structure, partner network, technology domains in order to deliver value defined by the organization in scope. The Operating Model serves as a blueprint for how resources are organized and operated to get critical work done. It encompasses decisions around the shape and size of the business organization, where to draw the boundaries for each line of business, how people work together within and across these boundaries, how the corporate center will add value to the business units, and what norms and behaviors should be encouraged.
The Operating Model Design Decision Areas:
Based on design principles the Operating Model takes shape through choices in the following areas::
- Structure - This defines the appropriate boundaries for lines of business and shared services, centers of expertise, and other coordinating mechanisms that allow a company to leverage scale and expertise. The structure also specifies the size and shape of the organization with indicative resource levels and locations. Organizations are composed of interrelated (sub) organization units serving as specialized function, departments, divisions, geographic locations, etc. The organization unit is conceptualized as a social system - complexes of people and/or groups that according to commonly agreed rules and procedures strive to realize one or more preset objectives. Typical functions in a business organization may include Finance, Marketing and Sales, Human Resources, Operations, etc. A Business organization is a dynamic social system in that it has a purpose and is greater than the sum of its parts. Essentially, you can think of this high level organizational chart as the "hardware" of the operating model with the next four dimensions (Accountability, Governance, Culture, and Capabilities) serving as the "software" that makes the "hardware" run. The organization structure design focuses on enabling effective management of complexity, coordination and control of organizational behavior. This is critical as the decision rights cascade grows, because the structure and operating principles as well as governance of the organization becomes more complex and critical to manage.
- Accountability - This describes the roles and responsibilities of the main organization entities including ownership of P&Ls and a clear, value adding role for the corporate center. There should be clear guidelines for the roles each organizational unit will play in critical decisions. A reward framework linked to accountability reinforces strong execution.
- Governance - Governance and behavior refers to executive forums and management processes that yield high-quality decisions on strategies, priorities, resource allocation and business performance management. A management dashboard with the key metrics keeps the focus on the company's top priorities.
- Culture and Values (Ways of working) - This describes the expected cultural norms for how people collaborate within and across functions or teams. Organizational culture is the collective behavior of humans who are part of an organization, and the meanings they attach to their actions. Culture includes the organizational values, visions, norms, working language, systems, symbols, beliefs and habits. Culture manifests itself in the particular way things are done in an organization. It affects who gets hired, how they get trained (formally or informally), what behaviors get rewarded, who gets promoted, and virtually all organizational procedures and administrative protocols. Organizational culture can be supportive of the following: Learning and Development (Growth), Participatory Decision-Making, Power Sharing, Support and Collaboration,
- Capabilities - This refers to how the organization combines people, processes, and technology in a repeatable way to deliver desired outcomes.
The Operating Model is the result of the Operations Strategy, and is focused on how to best enable and implement the organization's strategy. Operations strategy defines through the Operating Model, an organization structure design on how an entire business will allocate its resources to support operations and its strategic goals.
Operations Infrastructure
The Operations Infrastructure is the broad heading under which strategic decisions related to operations strategic decision areas concerned with people and systems are categorized. Infrastructure decision areas comprise:
- Organization structure - The design focuses on efficiency and effectiveness in managing the complexity, coordination, and control of organizational behavior which is critical to successful strategy execution as the cascade of objectives and decision rights grow and the organization becomes more complex to manage. Within the structure rules, policies, and procedures are uniformly and impersonally applied to exert control over organization members' behavior. Allocates special value developing tasks and roles to the employees and states how these tasks and roles can be correlated so as to maximize efficiency, quality, and customer satisfaction - the pillars of competitive advantage. Organizational structures are the manifestation of strategic orientations and regulate information flows, decision making, and patterns of behavior, that is, the “internal allocation of tasks, decisions, rules, and procedures for appraisal and reward, selected for the best pursuit of a strategy. Structures develop due to the need to organize behavior in a meaningful way and provide orientation for organizational members to set actions that comply with organizational strategy, organizational culture, and, as a result, accepted patterns of behavior. The behavior of an organization is usually guided by its strategic and tactical goals. Organization structure provides a visual explanation of the decision rights, clarifies roles and responsibilities, allocates human resources, and ensures a level of flexibility to respond to unexpected circumstances.unfolds as observable manifestations (phenomena) of predefined strategies as regulated by organizational structures.
- Planning and Control Systems - Organization control systems equips managers with motivational incentives for employees as well as feedback on employees and organizational performance.
- Human Resources - Human resources are the people that comprise the workforce including managers of an organization. Human resources represent one the category of assets employed by an organization to create and deliver products and services to customers. Human resource management is a function in an organization that is concerned with ensuring that the organization obtains and retains the skilled, committed and well-motivated workforce it needs.
- Quality Management - Quality management policies and principles
- New Product Development - The systems and procedures used to develop and design new prodcuts and services.
- Performance Management - Financial and non-financial performance management and its linkage to recognition and reward systems.
- Culture - This describes the expected cultural norms for how people collaborate within and across functions or teams. Organizational culture is the collective behavior of humans who are part of an organization, and the meanings they attach to their actions. Culture includes the organizational values, visions, norms, working language, systems, symbols, beliefs and habits. Culture manifests itself in the particular way things are done in an organization. It affects who gets hired, how they get trained (formally or informally), what behaviors get rewarded, who gets promoted, and virtually all organizational procedures and administrative protocols. Organizational culture can be supportive of the following: Learning and Development (Growth), Participatory Decision-Making, Power Sharing, Support and Collaboration,
Organization Physical Structure
Operations strategy defines through the design of the organization's structure and infrastructure how an entire business will allocate its resources to support operations and its strategic goals. Operations structure is a broad heading under which the strategic decision areas of operations related to physical attributes are categorized. The structural decision areas comprise:
- Facilities - The location, size and focus of operational resources. These decisions are concerned with where to locate production facilities, how large each facility should be, what goods or services should be produced at each location, what market each facility to serve, etc.
- Capacity - The capacity of operations and their ability to respond to changes in customer demand. These decisions are concerned with the use of facilities for example, through shift patterns, working hours and staffing levels. Decisions about capacity will affect the organization's ability to serve particular markets from a given location.
- Process Technology - The technology of the equipment used in operations processes. For example, the degree of automation used, the configuration of equipment, and so on.
- Supply Networks - The extent to which operations are conducted in house or outsourced. Decisions about vertical integration are also concerned with the choice of suppliers, their location, the extent of dependence on particular suppliers, and how relationships with suppliers are managed.
Execution Model
[TBD]
Operating Model
The operating model is an abstract representation of how an organization operates across process, organization structure, partner network, technology domains in order to deliver value defined by the organization in scope. The Operating Model serves as a blueprint for how resources are organized and operated to get critical work done. It encompasses decisions around the shape and size of the business organization, where to draw the boundaries for each line of business, how people work together within and across these boundaries, how the corporate center will add value to the business units, and what norms and behaviors should be encouraged.
The Operating Model Component Elements:
The Operating Model is the result of the Operations Strategy, and is focused on how to best enable and implement the organization's strategy. Operations strategy defines through the Operating Model, an organization structure design on how an entire business will allocate its resources to support operations and its strategic goals.
[TBD]
Organization Structure
Organization structure is the manifestation of strategic orientations and regulate information flows, decision making, and patterns of behavior (i.e., the “internal allocation of tasks, decisions, rules, and procedures for appraisal and reward), selected for the best pursuit of a strategy. The organization structure defines the the basic units that comprise the foundational elements of the organization and how they relate. Structures develop due to the need to organize behavior in a meaningful way and provide orientation for organizational members to set actions that comply with organizational strategy, organizational culture, and, as a result, accepted patterns of behavior.
The functions that an organization needs to perform in order to meet its objectives and mission can be grouped into function areas - areas of responsibility and supervision. The functions and structure provide a way to group and organize an entity's activities or capabilities. Functional structure includes the functions, positions, and departments that make up a company's functioning, and shows how the functional parts fit together as a whole system. Companies often have departments and teams structured within functions. An accounting department for example, may be one piece of a larger finance function/department. The organizational structure helps make clear where teams and departments fit into a company's overall operations.
The behavior of an organization is usually guided by its strategic and tactical goals. An organization may be organized around functional lines, products and services, reporting structure, etc,
Positions Structure
The organizational Position Structure defines the competency realms or human resource capabilities, organized under organizational units, that are decisive in implementing the current and emergent strategy including creating and delivering value to customers. The organization position structure is designed to enhance communication and information flow among organization system elements (people or groups of people) that comprise the organization social system. Within the structure, rules, policies, and procedures are uniformly and impersonally applied to exert control over members’ behaviors.
Everyone answers to someone; various managers within the company are held responsible for the management of the company's resources. The organizational position structure helps make clear who answers to whom and where they fit in the chain of command. With reference to a company's management there are various stakeholders like Board directors selected by the shareholders, and officers including CEO, COO, CFO, etc. appointed by the Board of Directors; managers who report to Officers; and shareholders.
Management Structure
All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities and authority to carry out different tasks.
Organization Structure Design
Once organizational purpose/mission, corporate strategy, business and competitive strategy, and values are clear, the organization can be structured in such a way that roles and functions are clearly defined and differentiated, lines of communications and accountability untangled, and decision-making procedures transparent and functional. Within the structure, rules, policies, and procedures are uniformly and impersonally applied to exert control over organizational members’ behaviors. The notion of “purpose” (as in purposeful endeavor) in social systems is expressed as a goal to be achieved by the positions within the organization. Members in that organization(or society) that hold those positions have to subscribe to that expressed purpose (goal) which gives coherence to their motivations, decisions, actions, and behavior. Obviously, the beliefs, motivations, etc. of the members of the organization that hold positions can also be influenced by culture (organizational, and environmental), as well as “self-awareness” (as it shapes learning and impacts decisions). In this formulation, “self-awareness” is an “internal” critical factor that can be expressed through “soft-goal” models (e.g., declaration of some condition that can influence the achievement of purposes/goals).
[TBD]
Operating Model
The operating model is an abstract representation of how an organization operates across process, organization structure, partner network, technology domains in order to deliver value defined by the organization in scope. The Operating Model serves as a blueprint for how resources are organized and operated to get critical work done. It encompasses decisions around the shape and size of the business organization, where to draw the boundaries for each line of business, how people work together within and across these boundaries, how the corporate center will add value to the business units, and what norms and behaviors should be encouraged.
The Operating Model Component Elements:
- Structure - This defines the appropriate boundaries for lines of business and shared services, centers of expertise, and other coordinating mechanisms that allow a company to leverage scale and expertise. The structure also specifies the size and shape of the organization with indicative resource levels and locations. Organizations are composed of interrelated (sub) organization units serving as specialized function, departments, divisions, geographic locations, etc. The organization unit is conceptualized as a social system - complexes of people and/or groups that according to commonly agreed rules and procedures strive to realize one or more preset objectives. Typical functions in a business organization may include Finance, Marketing and Sales, Human Resources, Operations, etc. A Business organization is a dynamic social system in that it has a purpose and is greater than the sum of its parts. Essentially, you can think of this high level organizational chart as the "hardware" of the operating model with the next four dimensions (Accountability, Governance, Culture, and Capabilities) serving as the "software" that makes the "hardware" run. The organization structure design focuses on enabling effective management of complexity, coordination and control of organizational behavior. This is critical as the decision rights cascade grows, because the structure and operating principles as well as governance of the organization becomes more complex and critical to manage.
- Accountability - This describes the roles and responsibilities of the main organization entities including ownership of P&Ls and a clear, value adding role for the corporate center. There should be clear guidelines for the roles each organizational unit will play in critical decisions. A reward framework linked to accountability reinforces strong execution.
- Governance - Governance and behavior refers to executive forums and management processes that yield high-quality decisions on strategies, priorities, resource allocation and business performance management. A management dashboard with the key metrics keeps the focus on the company's top priorities.
- Culture and Values (Ways of working) - This describes the expected cultural norms for how people collaborate within and across functions or teams. Organizational culture is the collective behavior of humans who are part of an organization, and the meanings they attach to their actions. Culture includes the organizational values, visions, norms, working language, systems, symbols, beliefs and habits. Culture manifests itself in the particular way things are done in an organization. It affects who gets hired, how they get trained (formally or informally), what behaviors get rewarded, who gets promoted, and virtually all organizational procedures and administrative protocols. Organizational culture can be supportive of the following: Learning and Development (Growth), Participatory Decision-Making, Power Sharing, Support and Collaboration,
- Capabilities - This refers to how the organization combines people, processes, and technology in a repeatable way to deliver desired outcomes.
The Operating Model is the result of the Operations Strategy, and is focused on how to best enable and implement the organization's strategy. Operations strategy defines through the Operating Model, an organization structure design on how an entire business will allocate its resources to support operations and its strategic goals.
[TBD]
Organization Structure
Organization structure is the manifestation of strategic orientations and regulate information flows, decision making, and patterns of behavior (i.e., the “internal allocation of tasks, decisions, rules, and procedures for appraisal and reward), selected for the best pursuit of a strategy. The organization structure defines the the basic units that comprise the foundational elements of the organization and how they relate. Structures develop due to the need to organize behavior in a meaningful way and provide orientation for organizational members to set actions that comply with organizational strategy, organizational culture, and, as a result, accepted patterns of behavior.
The functions that an organization needs to perform in order to meet its objectives and mission can be grouped into function areas - areas of responsibility and supervision. The functions and structure provide a way to group and organize an entity's activities or capabilities. Functional structure includes the functions, positions, and departments that make up a company's functioning, and shows how the functional parts fit together as a whole system. Companies often have departments and teams structured within functions. An accounting department for example, may be one piece of a larger finance function/department. The organizational structure helps make clear where teams and departments fit into a company's overall operations.
The behavior of an organization is usually guided by its strategic and tactical goals. An organization may be organized around functional lines, products and services, reporting structure, etc,
Positions Structure
The organizational Position Structure defines the competency realms or human resource capabilities, organized under organizational units, that are decisive in implementing the current and emergent strategy including creating and delivering value to customers. The organization position structure is designed to enhance communication and information flow among organization system elements (people or groups of people) that comprise the organization social system. Within the structure, rules, policies, and procedures are uniformly and impersonally applied to exert control over members’ behaviors.
Everyone answers to someone; various managers within the company are held responsible for the management of the company's resources. The organizational position structure helps make clear who answers to whom and where they fit in the chain of command. With reference to a company's management there are various stakeholders like Board directors selected by the shareholders, and officers including CEO, COO, CFO, etc. appointed by the Board of Directors; managers who report to Officers; and shareholders.
Management Structure
All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities and authority to carry out different tasks.
Organization Structure Design
Once organizational purpose/mission, corporate strategy, business and competitive strategy, and values are clear, the organization can be structured in such a way that roles and functions are clearly defined and differentiated, lines of communications and accountability untangled, and decision-making procedures transparent and functional. Within the structure, rules, policies, and procedures are uniformly and impersonally applied to exert control over organizational members’ behaviors. The notion of “purpose” (as in purposeful endeavor) in social systems is expressed as a goal to be achieved by the positions within the organization. Members in that organization(or society) that hold those positions have to subscribe to that expressed purpose (goal) which gives coherence to their motivations, decisions, actions, and behavior. Obviously, the beliefs, motivations, etc. of the members of the organization that hold positions can also be influenced by culture (organizational, and environmental), as well as “self-awareness” (as it shapes learning and impacts decisions). In this formulation, “self-awareness” is an “internal” critical factor that can be expressed through “soft-goal” models (e.g., declaration of some condition that can influence the achievement of purposes/goals).
Operations Systems
[TBD]
Operations Management
Operations management is concerned with the management of a company's operations - the activities that produce and deliver a product or service to customers. Operations management encompasses management functions such as planning, implementation and execution, and supervising the production of goods and services. Operations management has both strategic and tactical roles in the organization. Strategically (through Operations Strategy), operations management is concerned with determining operations approaches and capabilities needed to achieve the desired competitive position of the company as a whole, and operational goals. Tactically/Operationally, operations management is concerned with the daily tasks and tactics that transform materials or actions into a product or service. Not every organization will have a functional department called 'operations'; but they will all undertake operations activities, because every organization produces goods and/or delivers services.
Operations Management Process
The operations management process utilizes the Operations System specified by the Operations Strategy to manage the operations process in creating and delivering value to customers. Operations process comprises the following operations functions:
The purpose of the operations process is to keep the current value chain activities that drive the delivery of products and services in the organization moving and functioning at peak levels.
[TBD]
Operations Management
Operations management is concerned with the management of a company's operations - the activities that produce and deliver a product or service to customers. Operations management encompasses management functions such as planning, implementation and execution, and supervising the production of goods and services. Operations management has both strategic and tactical roles in the organization. Strategically (through Operations Strategy), operations management is concerned with determining operations approaches and capabilities needed to achieve the desired competitive position of the company as a whole, and operational goals. Tactically/Operationally, operations management is concerned with the daily tasks and tactics that transform materials or actions into a product or service. Not every organization will have a functional department called 'operations'; but they will all undertake operations activities, because every organization produces goods and/or delivers services.
Operations Management Process
The operations management process utilizes the Operations System specified by the Operations Strategy to manage the operations process in creating and delivering value to customers. Operations process comprises the following operations functions:
- Product Management
- Supply Chain
- Inventory
- Scheduling
- Quality
- Facilities planning and management
The purpose of the operations process is to keep the current value chain activities that drive the delivery of products and services in the organization moving and functioning at peak levels.
Copyright Enterprise Design Labs 2005 - 2018